SafetyNet Credit Advantages
If you are approved, SafetyNet Credit will give you a credit limit. How much the credit limit will be, depends largely on how much they can lend to you after carrying out their affordability and credit checks.
As an FCA-authorised lender, SafetNet Credit take affordability seriously. And, will only lend money to customers in an ethical manner.
Applications accepted from those with a poor credit rating
You do not need a great credit score to make an application to SafetyNet Credit. Even those with a poor credit rating can apply. This is because they base their decision on whether to approve you for credit or not, on both your credit history and your bank account data.
Revolving line of credit
SafetyNet Credit offers a financial product which is essentially a revolving line of credit. This means that you should only need to fill in one application form at the beginning of the process. If your application is approved, you will then have a ‘permanent credit line’ available to you without having to re-apply.
The advantage of this system is that you can borrow and repay as much as you like (within your credit limit) so long as your account is open. This is a much more flexible style of borrowing.
Optional automatic deposit function
A secure connection is made with your bank account during the application process. This allows SafetyNet Credit to track your balance every day and deposit money into your account when you need it. Money could be deposited, for example, if you were about to go into your unauthorised overdraft. This means that bank charges could be a thing of the past.
Repayments are only taken when you can afford them
When SafetyNet Credit see money coming into your account, they will then take repayment. They will always leave you with a ‘buffer’. This style of automatic repayments is designed so that you can minimise your period of borrowing.
Here is what happens when funds come into your account. If you have enough to make a repayment to SafetyNet Credit then, the repayment is taken to repay the full outstanding balance. Or, as much of the balance as you can. This is so that you are still left with a ‘buffer’ above your SafetyNet level.
This means that you could end up paying less interest because you could be paying off the loan as soon as you have enough money to do so. This is especially beneficial when interest is charged daily.
When you log into your account, you will have a personalised dashboard with money management tools. Here you can do things such as tracking and analysing your spending, monitoring your loan details and making any manual payments. You can also download an app to manage your account.
It is free to link your account with SafetyNet Credit
Even if you decide not to borrow anything, it is free to link your account to SafetyNet Credit. Your credit will remain available until you use it or until your account closes.
Minimum and maximum loan amounts
SecurityNet Credit offers loans from £100 up to a maximum of £500 for new customers. This is a relatively low maximum compared to other short-term lenders. However, because this is actually a revolving line of credit, you can borrow money and then pay it back as many times as you like while your account is open.
This means that in reality, you could actually end up borrowing more than £500 over the time your account is open. For example, you are approved for a credit limit of £500. You borrow £300 then later pay it back. You then borrow another £300. Technically you have now borrowed £600 but you have not ever borrowed more than your £500 credit limit at one time.
Applying for a loan with SafetyNet Credit involves completing a four-page online application form.
The first page asks for your name and contact details. The second page requests information about your employment, borrowing needs and income. You will also need to fill in your bank account details on this page.
The website then automatically calculates your total repayable amount. Also, the interest based on how much credit you requested. The third page will show you the calculation and you will be asked to provide your debit card details for repayment. You will also need to create a password for your online account at this stage.
The final page will ask you for your online banking details. This will allow SafetyNet Credit to make a secure connection to your bank account and run their affordability checks. If you want to agree to their loan, you will need to agree to their terms and conditions.
Who can apply to SafetyNet Credit?
In order to apply for finance from SafetyNet Credit, you must have a UK bank account with online banking. All of this must be in your name.
You must also be aged 18 or over, be in employment and have a salary or other regular income.
SafetyNet Credit accepts applications from people who have a poor credit history. You will be subject to credit history checks and bank account activity checks when you apply. This is so that SafetyNet Credit can determine how much credit they will be able to offer you.
What information will you need to provide to them?
You will need to provide your bank account number and sort code, your debit card details and your internet login information.
How can I apply?
SafetyNet Credit accepts applications on its website or through their app, which is available for Apple and Android. Alternatively, you can apply with Cashlady. Both desktop and mobile versions are available too.
How long will the application take?
The application form should not take more than5-10 minutes to complete.
What are their borrowing costs?
Borrowing costs are 0.8% per day from SafetyNet Credit. This means that they charge 80p for every £100 that you borrow. You are only charged for the days that you borrow money. If you do not use your credit limit, you will not be charged anything.
Will I be credit searched?
Yes. Almost every short term lender will carry out a credit check before deciding whether to approve your loan application. This is part of ‘responsible lending’ so loan providers do not lend you more than you can afford to pay back. However, SafetyNet Credit will not solely base their decision on your credit score. The access to your bank account income and expenditure gives them a better picture of your current financial situation.
Is SafetyNet Credit a payday lender?
SafetyNet Credit is not a payday lender in the typical sense because unlike payday lenders, they provide you with a revolving line of credit. However, this type of revolving credit is like a payday loan in the way that it is a short term loan of money, meant to ‘tide you over’ until your next pay day.
In many respects, SafetyNet Credit operates much like a credit card with an ongoing credit limit you can utilise when you need it most.
What is their cancellation policy?
You are able to request to reduce your credit limit at any time. If you do not borrow any money you will not incur any costs. There are no early repayment fees if you choose to repay your loan early.
Under the Consumer Credit Act 1974, you have a right to withdraw from your agreement for a period of 14 days. Starting with the day when you receive the executed copy of the agreement and ending 14 days after that date. If you want to do this, you need to give notice in writing either through a letter or email. What if you have already been paid? Then, some or all of your credit limit, then you will need to pay this back within 30 days of writing to give notice, together with any accrued interest.
Time taken to transfer funds
Once your account has been set up, you are able to transfer money into your bank account. Usually within 15 minutes, using SafetyNet Credit’s mobile app or website.
To learn more about SafetyNet Credit, read the next chapter and please remember to share.